Second, Chinese companies are inexperienced with outward investment and have already made a lot of mistakes with early deals.

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In his opening remarks at the session Paulson said the business tax system in the U.S. is "clearly not optimal, " adding that it should not discourage either inward or outward investment flows.

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Over the past decade, its transformation from a snooty commercial bank into a market-oriented investment bank has fostered a more outward-looking and less separatist culture.

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